The UK government has extended its Plug-in Truck and Van Grant for a further year, in a move aimed at helping more businesses and vehicle operators electrify their fleets.
The grants will continue through to at least April 2027, although grant levels for the 2026/27 financial year have not been announced yet and will be confirmed in due course.
The Plug-in Van and Truck Grant currently offers discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks and £25,000 for large trucks.
They are open to fleet operators, ranging from major transport firms to smaller independent businesses, along with individual drivers.
The extension will help fleets cut running costs, and by switching to electric, businesses could save more than £2,800 annually on fuel alone according to industry figures.
Funding for the extended grants forms part of government’s £650m scheme to make it cheaper to buy EVs and helping to boost growth as part of Labour’s Plan for Change.
Mike Hawes, SMMT Chief Executive, said: “Extending the Plug-in Van and Truck Grant until 2027 will help increase zero emission uptake in the critical commercial vehicle sector, much of which faces the same end of sale date as the car market.
“One of the major barriers to adoption is affordability so this extension will reduce the initial cost of purchase which, together with the accelerated rollout of infrastructure, will help more operators make the switch.
“The next step must be more affordable energy so government can maximise the return on investment for both the environment and the economy.”
